Toy makers are feeling the effects of former retail giant Toys R Us closing its doors. Hasbro has announced it's laying off up to 10 percent of its employees.

Hasbro has 5,400 workers globally, half of which work in the U.S. The company has yet to say how many of those workers are going to be let go.

The move is projected to save the company $30 million to $40 million a year by 2020. Toy companies have faced increased challenges after Toys R Us stopped buying their products after filing bankruptcy last year.

Mattel said it was laying off nearly a quarter of its workers in July amid falling sales.